Question
The Jawad Machine Company produces drilling machines according to customer specifications. The following data pertains to Job 894, order placed by Aslam Machines Shop. Customer's
The Jawad Machine Company produces drilling machines according to customer specifications. The following data pertains to Job 894, order placed by Aslam Machines Shop.
Customer's order no: C153
Date started: November 04
Date ordered: October 25
Date finished: November 18
Description: 30 units of Drilling machines
Sales Price: $ 70,000
Costs incurred during the manufacturing of order are given as follows:
Week ending 11/11
Week ending 11/18
Material used - Department 1
$ 10000
$ 9,000
Material used - Department 2
3,500
5,000
Labor hours used - Department 1
500
600
Direct labor rate - Department 1
$ 8 per hour
$ 9 per hour
Labor hours used - Department 2
150
250
Direct labor rate - Department 2
$ 13 per hour
$ 9 per hour
Machine hours - Department 1
300
250
Factory overhead - Department 1
$ 6 per machine hour
$ 6 per machine hour
Factory overhead - Department 2
$ 7 per labor hour
$ 7 per labor hour
Marketing and administrative costs are charged to each order at a rate of 30% of total cost to manufacture.
Required:A Departmentalization job order cost sheet showing above data.
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